Severstal buys Esmark
Severstal, Russia's #1 steelmaker, has struck again in the US. It announced that its has won a bidding war to buy Esmark, a US steel products company in a $775 million deal. It beat out India-based Essar Steel. Esmark was willing to be bought out, thanks to difficulties sin getting financing.
Severstal has been expanding: in the US, earlier this year, it bought ArcelorMittal's Sparrows Point steel plant near Baltimore for $950 million. ArcelorMittal was forced to divest the plant as part of antitrust agreement, following its 2006 merger. (Curiously, Esmark had bid for the plant unsuccessfully).
And in another iron-y, Arcelor had atempted to buy Severstal in 2006, to avoid Mittal's clutches.
Severstal in 2003 also acquired US-based Rouge Industries of Michigan.
Esmark also has been in an acquisition mode. Since 2003 it has bought over 10 US steelmakers, including North American Steel, Miami Valley Steel Services, and others.
Essar, though disappointed in this deal, has actively pursued North American companies. In 2007 it bought Minnesota Steel Industries ($1.7 billion) and Canada's Algoma Steel ($1.6 billion).
You don't have to be a Lou Dobbs to have concern over non-US companies having such an important share of a strategic industry in the US, all based on cheap dollars. It also doesn't help that with steel prices sky-high, a number of those old rust-belt steel mills might have finally become profitable once morea.
10:11:21 PM 
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